Willie R. Tubbs, FISM News
Republicans and Democrats are showing again that they tend to work best during the 11th hour.
After months of little to no progress, and with default on the horizon, House Speaker Kevin McCarthy and President Joe Biden appear to be closing in on a deal that will solve the nation’s credit rating issue for two years.
Reuters reports that the compromise taking shape is one that would allow for increased spending on defense and veterans, and cap everything else at current-year rates.
Americans might breathe a slight sigh of relief at the news, but the victory would prove a mixed blessing for taxpayers. A national default and subsequent economic hardship that follows would be avoided but at the cost of $1 trillion in increased spending.
Per the Reuters report, Republicans and Democrats are within $70 billion of each other in terms of the amount they’re willing to spend.
This would be a compromise by both sides. Biden had originally floated the idea of slashing defense budgets as a means of lowering federal spending while Republicans have pushed to roll back spending commitments to 2022 levels.
The two sides spent much of Thursday in negotiations, and McCarthy has pledged to not leave the Capital City without a deal.
“I’m staying in DC to fight for an agreement that’s worthy of the American people—for as long as it takes,” McCarthy tweeted. “I will continue the fight to curb inflation, stop reckless spending, make our economy stronger, and end our dependence on China.”
I’m staying in DC to fight for an agreement that’s worthy of the American people—for as long as it takes.
I will continue the fight to curb inflation, stop reckless spending, make our economy stronger, and end our dependence on China.
— Kevin McCarthy (@SpeakerMcCarthy) May 26, 2023
One would have a hard time guessing negotiations have been productive from reading the Biden camp’s social media.
The White House’s official Twitter account posted an adversarial, “The threat of default is a crisis manufactured by House Republicans. Plain and simple.” This was the only remark made by the White House or either of Biden’s Twitter accounts on the debt ceiling for Thursday.
As previously reported by FISM, polls indicate that the majority of Americans are in favor of budget cuts accompanying a debt ceiling increase.
The emerging deal is far from finalized, and there is a chance for any number of snags.
At present, Republicans are still pushing for a radical decrease in the funds and new manpower scheduled for the IRS. According to Reuters, the Biden administration is considering scaling back its tax-collection plans.
If Biden yields on the IRS topic, it will likely be because he places far more importance on social justice and green energy policies, two areas that would receive Inflation Reduction Act-induced spikes in spending if a deal comes to fruition.